Viktor Melnikov, the deputy chairman of the Russian Central Bank, told the third Russian-Chinese Financial and Banking Forum in Moscow that today 40 banks from both countries maintained correspondent relations and 32 of them were Russian banks.
Melnikov said bilateral trade turnover rose by 34.7% in 2004 to more than $20 billion and by another 26% in January-April 2005.
An agreement signed by the Central Bank of Russia and the National Bank of China on interbank settlements in trade in bordering regions was a major stimulus for cooperation between the banks from both countries. The agreement gave banks from Russia and China the chance to carry out payments in their own currencies, whereas previously they had to make settlements in U.S. dollars. According to Melnikov, many banks have already benefited from this agreement.
But the potential of the banking systems of Russia and China has not yet been fully tapped, Melnikov said.
"Banks involved in foreign trade operations largely offer traditional services like payments, settlements and guarantees," Melnikov said, but added that banks were still slow to consolidate their resources for joint projects.
Melnikov also said the banking communities of both countries were insufficiently informed.
He added that favorable terms for the banks to open branches and offices in Russia and China would help improve bilateral bank cooperation. These issues will also top the forum's agenda.
